However he says that the Government should be working harder to provide alternatives: "At Fair Investment we have argued that the decision to scrap CTFs was a positive step but what we really need is more options. As The Children's Mutual has said, the Government did not consult with the industry about scrapping the CTF and so far, no alternative options have been mentioned. However, rather than looking at the past perhaps we should be campaigning harder for viable alternatives which can be presented to the Government.

The Child Trust Fund scheme was one of the first things to fall under the new coalition’s axe as they sought to make huge cut backs in order to tackle the huge national debt.

Labour introduced CTFs 2002 as a way of encouraging people to build a nest egg for their children. But the Lib/Con coalition has, rightly or wrongly, decided that it’s not the Government’s responsibility to build a savings pot for children’s futures.

Although the scrapping of the scheme has been a cause for concern and criticism many belive it will pave the way for simpler, less Government-backed, savings initiatives.

Children’s ISA?
Saving in an ISA would allow parents to make the most of a tax free limit in order to build up a fund bit by bit.

For example, figures show that if parents were to save Child Benefit (currently around £88 a month) into a saving plan for 18 years, based on the latest official Financial Services Authority (FSA) growth estimate of 7%, a child would have a nest egg of nearly £38,000 aged 18.

George Ladds added: "I believe that a simple system for saving for children, through a Children’s ISA with an allowance of £3,600 per annum, and clearing away not only the now defunct CTF but also tax-exempt plans would demonstrate the Government's commitment to encourage saving for children.

"Yes, the CTF was originally launched to encourage parents to save, but I think parents need to be given more credit – most, if they can afford to, will save for their children anyway, without being pushed by the Government, what they need is better options, not handouts from the state.”

Pension funds?
Some have even gone as far as to suggest that instead of saving so that children can benefit in their late teens, parents should be looking longer term and putting away for their children’s pensions. NFU Mutual has recently said said that saving for pensions from childhood would help bridge the retirement savings crisis that the UK currently faces in the wake of pension reform.